REPORT: China just took action after bank lending surged by a record amount last month

The mammoth 2.51 trillion yuan ($US390 billion) worth of new loans extended by Chinese banks in January, the largest on record, appears to have had ramifications in Beijing.

According to Bloomberg, citing sources familiar with the matter, the People’s Bank of China (PBOC) increased the reserve requirement ratio (RRR) – the amount of cash that banks must hold – for some banks who boosted lending too quickly during the month.

No details were provided as to who, although some regional lenders are said to be among the banks hit with the higher ratio.